From inception of operations, Comprehensive Company provided for the uncollectible account expense under the allowance method using the percentage of sales method. No year -end adjustment to the allowance method were made. The balance in the allowance for doubtful accounts was P1,000,000 on January 1, 2020. During the current year, credit sales totaled P20,000,000 interim provisions for doubtful accounts were made at 2% of credit sales, bad debts of P200,000 were written off, and recoveries of accounts previously written off amounted to P50,000. An aging of receivables was made for the first time on December 31, 2020. Uncollectible Aging 0-60 Balance 6,000,000 10% 61-180 2,000,000 1,500,000 20% 30% 181-360 Over 360 500,000 50% Based on the review of collectability of the account balances in the over 360 days aging category, additional accounts totaling to P100,000 are to be written off on December 31, 2020. Effective with the year-ended December 31, 2020, the entity adopted a new accounting method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging of accounts receivable. 29. What is the required allowance for doubtful accounts on December 31, 2020? a. 1,650,000 b. 1,950,000 c. 1,700,000 d. 1,450,000 20 Whot onmount ah. douhtful
From inception of operations, Comprehensive Company provided for the uncollectible account expense under the allowance method using the percentage of sales method. No year -end adjustment to the allowance method were made. The balance in the allowance for doubtful accounts was P1,000,000 on January 1, 2020. During the current year, credit sales totaled P20,000,000 interim provisions for doubtful accounts were made at 2% of credit sales, bad debts of P200,000 were written off, and recoveries of accounts previously written off amounted to P50,000. An aging of receivables was made for the first time on December 31, 2020. Uncollectible Aging 0-60 Balance 6,000,000 10% 61-180 2,000,000 1,500,000 20% 30% 181-360 Over 360 500,000 50% Based on the review of collectability of the account balances in the over 360 days aging category, additional accounts totaling to P100,000 are to be written off on December 31, 2020. Effective with the year-ended December 31, 2020, the entity adopted a new accounting method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging of accounts receivable. 29. What is the required allowance for doubtful accounts on December 31, 2020? a. 1,650,000 b. 1,950,000 c. 1,700,000 d. 1,450,000 20 Whot onmount ah. douhtful
From inception of operations, Comprehensive Company provided for the uncollectible account expense under the allowance method using the percentage of sales method. No year -end adjustment to the allowance method were made. The balance in the allowance for doubtful accounts was P1,000,000 on January 1, 2020. During the current year, credit sales totaled P20,000,000 interim provisions for doubtful accounts were made at 2% of credit sales, bad debts of P200,000 were written off, and recoveries of accounts previously written off amounted to P50,000. An aging of receivables was made for the first time on December 31, 2020. Uncollectible Aging 0-60 Balance 6,000,000 10% 61-180 2,000,000 1,500,000 20% 30% 181-360 Over 360 500,000 50% Based on the review of collectability of the account balances in the over 360 days aging category, additional accounts totaling to P100,000 are to be written off on December 31, 2020. Effective with the year-ended December 31, 2020, the entity adopted a new accounting method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging of accounts receivable. 29. What is the required allowance for doubtful accounts on December 31, 2020? a. 1,650,000 b. 1,950,000 c. 1,700,000 d. 1,450,000 20 Whot onmount ah. douhtful
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